China Vanke has no plans to extend bonds amid market slump, REDD reports (updated)

Chemtros

16/01/2025 08:29

(Adds context in paragraphs 2,3, Vanke comment in paragraph 6)
       Jan 16 (Reuters) - Property developer China Vanke
 000002.SZ  told some investors on Wednesday that it had no
plans to extend the maturity dates of its bonds amid a market
sell-off, financial news outlet REDD reported, citing two
persons briefed by the company on the matter.
    Vanke's onshore bond prices have been volatile in the past
few weeks over concerns about its ability to make maturity
payments this year following a prolonged property market slump.
Its January 2028 yuan bond was temporarily suspended from
trading on Thursday after plunging 21%.   
        The state-backed developer has a total of $3.4 billion
worth of public bonds, which are mostly onshore debt except one
dollar bond - maturing this year. Its next onshore repayment
deadline is Jan. 27. 
  
    REDD reported on Thursday that China Vanke briefed investors
on the matter after online rumours that it was considering bond
extensions.
    The property developer, however, did not clarify whether it
had prepared funds to repay debt maturing this quarter, REDD
reported.
    China Vanke said in a statement it will "go all out" to
raise funds through operations and financing for the public bond
obligations due in 2025. It said it would also continue to
accelerate asset sales and exit its non-core businesses for the
repayments. 
    China Vanke highlighted its reliance on operating cash flow
and asset sales for funding, with proceeds from several
transactions signed last year beginning to materialise, the
report said.
    Funds from the asset sales will be used to support debt
repayments, the report said.
    Many highly indebted Chinese developers have kept extending
deadlines on onshore repayments to bondholders without formal
restructurings, to avoid technical defaults. 

 (Reporting by John Biju in Bengaluru and Clare Jim in Hong
Kong; Editing by Subhranshu Sahu and Saad Sayeed)
 ((John.Biju@thomsonreuters.com;))